Network 2.0 is our multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada
We have implemented Network 2.0 optimization in approximately 410 locations in the U.S. and Canada as of May 31, 2026
We completed Canada's implementation of Network 2.0 in the fourth quarter of fiscal year 2025 and expect to complete the U.S. implementation by the end of calendar 2027
Operating income increased in 2026 primarily due to improved base yields for our package services, increased U.S. domestic package volumes and higher fuel surcharges, combined with the continued structural cost reductions from business optimization initiatives
We expect to achieve $1.0 billion in structural cost reduction by the end of calendar year 2026
two findings, in the order they were read
Business optimization costs decreased from $756 million in 2025 to $366 million in 2026, bearing on the cost reduction initiative.
The report says this changed. It does not say whether that is good or bad, so neither do we.